The Lexus IS, which is likely to get a hybrid version for the next generation, is only slightly larger than the HS 250h and would be a direct competitor.

Lexus said there is a larger premium market in the US and this wouldn’t be an issue.

“Selling the HS 250h here would be an emphatic no because of Toyota’s plans to put a hybrid in every range by 2020. The car would be premium d-segment and a direct competitor to the Avensis and the IS, which already meet premium needs.”

The twin-cam engine with Variable Valve Timing in the HS 250h has an output of 145bhp. In combination with the hybrid drive motor, the powertrain generates 184bhp.